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Fair Value Measurements (Tables) | 3 Months Ended
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Mar. 31, 2013
Fair Value Measurements [Abstract] |
Summary of Valuation of LCNB's Assets Recorded at Fair Value by Inputs Level | The following table summarizes the valuation of LCNB's assets recorded at fair value by input levels as of March 31, 2013 and December 31, 2012 (in thousands):
|  |  | Fair Value Measurements at the End of the Reporting Period Using |  |  |  |
|  | Fair Value Measurements |  |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |  |  | Total Gains (Losses) |
March 31, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Recurring fair value measurements: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment securities available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury notes |  | $ | 19,693 |  |  |  | 19,693 |  |  |  | - |  |  |  | - |  |  |  | - |
U.S. Agency notes |  |  | 101,499 |  |  |  | - |  |  |  | 101,499 |  |  |  | - |  |  |  | - |
U.S. Agency mortgage-backed securities |  |  | 54,156 |  |  |  | - |  |  |  | 54,156 |  |  |  | - |  |  |  | - |
Certificates of deposit with other banks |  |  | 1,509 |  |  |  | - |  |  |  | 1,509 |  |  |  | - |  |  |  |  |
Municipal securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-taxable |  |  | 78,744 |  |  |  | - |  |  |  | 78,744 |  |  |  | - |  |  |  | - |
Taxable |  |  | 17,592 |  |  |  | - |  |  |  | 17,592 |  |  |  | - |  |  |  | - |
Mutual funds |  |  | 2,223 |  |  |  | 1,223 |  |  |  | 1,000 |  |  |  | - |  |  |  | - |
Trust preferred securities |  |  | 148 |  |  |  | 148 |  |  |  | - |  |  |  | - |  |  |  | - |
Equity securities |  |  | 1,995 |  |  |  | 1,995 |  |  |  | - |  |  |  | - |  |  |  | - |
Total recurring fair value measurements |  | $ | 277,559 |  |  |  | 23,059 |  |  |  | 254,500 |  |  |  | - |  |  |  | - |
Nonrecurring fair value measurements: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Impaired loans |  | $ | 4,589 |  |  |  | - |  |  |  | 707 |  |  |  | 3,882 |  |  |  | - |
Other real estate owned and repossessed assets (a) |  |  | 1,687 |  |  |  | - |  |  |  | 1,687 |  |  |  | - |  |  |  | 230 |
Total nonrecurring fair value measurements |  | $ | 6,276 |  |  |  | - |  |  |  | 2,394 |  |  |  | 3,882 |  |  |  | 230 |
December 31, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Recurring fair value measurement: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment securities available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury notes |  | $ | 18,686 |  |  |  | 18,686 |  |  |  | - |  |  |  | - |  |  |  | - |
U.S. Agency notes |  |  | 90,606 |  |  |  | - |  |  |  | 90,606 |  |  |  | - |  |  |  | - |
U.S. Agency mortgage-backed securities |  |  | 52,541 |  |  |  | - |  |  |  | 52,541 |  |  |  | - |  |  |  | - |
Corporate securities |  |  | 3,067 |  |  |  | 3,067 |  |  |  | - |  |  |  | - |  |  |  | - |
Municipal securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-taxable |  |  | 73,882 |  |  |  | - |  |  |  | 73,882 |  |  |  | - |  |  |  | - |
Taxable |  |  | 15,841 |  |  |  | - |  |  |  | 15,841 |  |  |  | - |  |  |  | - |
Mutual funds |  |  | 2,168 |  |  |  | 1,168 |  |  |  | 1,000 |  |  |  | - |  |  |  | - |
Trust preferred securities |  |  | 245 |  |  |  | 245 |  |  |  | - |  |  |  | - |  |  |  | - |
Equity securities |  |  | 1,470 |  |  |  | 1,470 |  |  |  | - |  |  |  | - |  |  |  | - |
Total recurring fair value measurements |  | $ | 258,506 |  |  |  | 24,636 |  |  |  | 233,870 |  |  |  | - |  |  |  | - |
Nonrecurring fair value measurements: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Impaired loans |  | $ | 4,276 |  |  |  | - |  |  |  | 161 |  |  |  | 4,115 |  |  |  | - |
Other real estate owned and repossessed assets (b) |  |  | 2,189 |  |  |  | - |  |  |  | 2,189 |  |  |  | - |  |  |  | (295 | )
Total nonrecurring fair value measurements |  | $ | 6,465 |  |  |  | - |  |  |  | 2,350 |  |  |  | 4,115 |  |  |  | (295 | )
(a) Two other real estate owned properties with a total carrying amount of $173,000 were written down to their combined fair value of $156,000, resulting in an impairment charge of $17,000. Four other real estate owned properties with a total carrying amount of $612,000 were sold for a combined total of $857,000, resulting in a net gain of $245,000. A repossessed asset with a carrying value of $6,000 was sold for $8,000, resulting in a net gain of $2,000. The write-downs, losses, and gains were included in other non-interest expense for the period. |
(b) Eight other real estate owned properties with a total carrying amount of $1,809,000 were written down to their combined fair value of $1,525,000, resulting in an impairment charge of $284,000. Another property was sold at a loss of $8,000. Repossessed assets with a carrying value of $23,000 were sold for a combined total of $20,000, resulting in a net loss of $3,000. The write-downs and losses were included in other non-interest expense for the period. |
Carrying Amounts and Estimated Fair Values of Financial Instruments | Carrying amounts and estimated fair values of financial instruments as of March 31, 2013 and December 31, 2012 are as follows (in thousands):
|  | March 31, 2013 |  |  | December 31, 2012 |
|  | Carrying |  |  | Fair |  |  | Carrying |  |  | Fair |
|  | Amount |  |  | Value |  |  | Amount |  |  | Value |
FINANCIAL ASSETS: |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 28,313 |  |  |  | 28,313 |  |  |  | 13,475 |  |  |  | 13,475 |
Investment securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale |  |  | 277,559 |  |  |  | 277,559 |  |  |  | 258,506 |  |  |  | 258,506 |
Held-to-maturity |  |  | 22,831 |  |  |  | 22,831 |  |  |  | 15,424 |  |  |  | 15,424 |
Federal Reserve Bank stock |  |  | 1,106 |  |  |  | 1,106 |  |  |  | 949 |  |  |  | 949 |
Federal Home Loan Bank stock |  |  | 2,854 |  |  |  | 2,854 |  |  |  | 2,091 |  |  |  | 2,091 |
Loans, net |  |  | 546,263 |  |  |  | 554,993 |  |  |  | 450,346 |  |  |  | 453,060 |
FINANCIAL LIABILITIES: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  |  | 820,870 |  |  |  | 825,318 |  |  |  | 671,471 |  |  |  | 675,964 |
Short-term borrowings |  |  | 11,609 |  |  |  | 11,609 |  |  |  | 13,756 |  |  |  | 13,756 |
Long-term debt |  |  | 13,128 |  |  |  | 14,066 |  |  |  | 13,705 |  |  |  | 14,724 |
Summary of Categorization by Inputs Level of LCNB's Financial Assets and Liabilities Not Recorded at Fair Value but for Which Fair Value is Disclosed | The following table summarizes the categorization by input level as of March 31, 2013 and December 31, 2012 of LCNB's financial assets and liabilities not recorded at fair value but for which fair value is disclosed (in thousands):
|  |  | Fair Value Measurements at the End of the Reporting Period Using |
|  | Fair Value Measurements |  |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |
March 31, 2013 |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |
Loans, net |  | $ | 550,404 |  |  |  | - |  |  |  | 550,404 |  |  |  | - |
Investment securities, non-taxable, held-to-maturity |  |  | 22,831 |  |  |  | - |  |  |  | - |  |  |  | 22,831 |
Federal Reserve Bank stock |  |  | 1,106 |  |  |  | 1,106 |  |  |  | - |  |  |  | - |
Federal Home Loan Bank stock |  |  | 2,854 |  |  |  | 2,854 |  |  |  | - |  |  |  | - |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  |  | 825,318 |  |  |  | - |  |  |  | 825,318 |  |  |  | - |
Long-term debt |  |  | 14,066 |  |  |  | - |  |  |  | 14,066 |  |  |  | - |
December 31, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans, net |  | $ | 448,784 |  |  |  | - |  |  |  | 448,784 |  |  |  | - |
Investment securities, non-taxable, held-to-maturity |  |  | 15,424 |  |  |  | - |  |  |  | - |  |  |  | 15,424 |
Federal Reserve Bank stock |  |  | 949 |  |  |  | 949 |  |  |  | - |  |  |  | - |
Federal Home Loan Bank stock |  |  | 2,091 |  |  |  | 2,091 |  |  |  | - |  |  |  | - |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  |  | 675,964 |  |  |  | - |  |  |  | 675,964 |  |  |  | - |
Long-term debt |  |  | 14,724 |  |  |  | - |  |  |  | 14,724 |  |  |  | - |

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- Definition Tabular disclosure of the fair value of assets and liabilities not recorded at fair value but for which fair value is disclosed. + References No definition available. + Details
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- Definition Tabular disclosure related to assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a recurring and/or nonrecurring basis in periods after initial recognition. Disclosures include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3) as well as transfers between levels 1 and 2. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 6 -Footnote 4 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a,b,bb) -URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 32 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2C -URI http://asc.fasb.org/extlink&oid=7578670&loc=SL7498348-110258 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19279-110258 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19190-110258 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 33 -Subparagraph a, b -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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- Definition Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 14 -Subparagraph a -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 18 -Subparagraph c(2), d, e, f -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15 -Subparagraph b-d -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13467-108611 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 19 -Subparagraph a, b, c(1), d(1) -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 32 -Subparagraph a, c(1), c(2), c(3), d -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 10 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13476-108611 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 + Details
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